BANK OF AMERICA JUMPS AFTER EARNINGS BEAT ESTIMATES
Bank of America is currently trading at 28.58-higher by about 0.40% as compared to the previous closing. In Pre-market trading on Monday, the stock was trading higher by 1.02%. The stock has cut some of its earlier gains after the opening bell.
Bank of America reported its Q3 earnings before the market open on Monday which beat market expectations. The bank reported EPS of 66 cents- above the market expectation of 62 cents. BoA’s revenues for Q3 were $22.80B- above the market estimates of $22.67B.The bank has managed to cut its expenses 2% to $13.1 billion, matching market expectations.
The bank’s CEO said in the press release that responsible growth, backed by a solid U.S. economy and a healthy U.S. consumer, combined to deliver the highest quarterly pre-tax earnings in the company’s history. The bank’s net interest margin, a widely watched measure of profitability, rose 4 basis points to 2.42 percentage points, beating the market estimate by 1 basis point.
On the technical front, the RSI is currently at 32.42% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 28.40 TAKE PROFIT AT 29.10 STOP LOSS AT 28.05